As India’s IT sector braces for a US slowdown, Bengaluru-based Happiest Minds is charting its personal course. The mid-tier digital transformation specialist is pushing forward with an bold technique, focusing on double-digit enlargement by way of FY26 and FY27—whilst bigger rivals wrestle to realize momentum.
Its technique? A multi-pronged push into rising applied sciences, productized companies, and high-value shopper relationships—bolstered by strategic acquisitions and a management shake-up. Quite than enjoying protection towards macroeconomic uncertainty, Happiest Minds goes all in on reinvention.
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“The market is predicting a US slowdown or recession. This has clouded the prospects for the Indian IT {industry}. We wish to state emphatically that at Happiest Minds, we see no recession-driven slowdown,” stated chairman and chief mentor Ashok Soota at a 26 March press convention.
This confidence stems from a collection of strategic shifts—what the corporate calls its ’10 transformational adjustments’—designed to strengthen its aggressive edge and guarantee resilience in unsure occasions.
“Because of our 10 transformational adjustments and our devoted groups, we see view forward for the following two years,” he added,” Soota added.
Happiest Minds isn’t simply bracing for macroeconomic challenges—it’s reinventing its enterprise mannequin to maneuver up the worth chain, develop into productized companies, and deepen shopper relationships in high-growth sectors. This three-pronged technique—centered on know-how innovation, gross sales enlargement, and operational excellence—shouldn’t be solely insulating the corporate from exterior dangers but in addition positioning it as a frontrunner within the digital financial system.
Generative AI and {industry} focus
On the core of this reinvention is a push into cutting-edge applied sciences like Generative AI, alongside a sharper {industry} focus.
Happiest Minds is doubling down on GenAI, launching a devoted Enterprise Service Unit led by its former CTO to develop enterprise-grade AI options. The initiative is designed to speed up digital transformation for purchasers, embedding AI-driven efficiencies throughout operations.
To make sure its AI and digital options align with industry-specific wants, the corporate has adopted a verticalized construction, with devoted groups throughout six high-growth sectors, together with BFSI, EdTech, and Healthcare. This specialization permits Happiest Minds to ship high-impact, tailor-made digital transformation tasks, setting it aside in a crowded IT companies market.
A key progress lever is increasing smaller accounts into large-scale engagements. Shoppers at the moment contributing $2–5 million yearly are being nurtured into $10–20 million partnerships over the following two years. A centered crew of shopper companions is driving this enlargement, deepening relationships with 10–15 high-potential accounts to create a extra predictable income stream whereas decreasing volatility.
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Happiest Minds can be sharpening its give attention to personal fairness (PE) companies and their portfolio corporations, providing specialised companies resembling tech due diligence, cybersecurity, and digital modernization—segments that stay resilient even in downturns.
Concurrently, the corporate is increasing inside the World Functionality Centres (GCCs) ecosystem, serving to multinational companies optimize and scale their international supply facilities in India and different cost-efficient markets.
By tapping into these high-growth segments, Happiest Minds is constructing a extra recession-proof enterprise, decreasing its reliance on conventional IT spending cycles whereas capitalizing on long-term digital transformation tendencies.
Pivoting to product innovation – SaaS and HaaS
Happiest Minds is decreasing its reliance on conventional, manpower-driven companies by increasing into productized options and subscription-based fashions.
A key step on this shift was its $94.5 million (round ₹779 crore) acquisition of PureSoftware in April 2024. The deal introduced in Arttha, a digital banking platform, which is now being transitioned to a Software program-as-a-Service (SaaS) mannequin, catering to each on-premise and cloud-based purchasers.
The corporate can be betting on {Hardware}-as-a-Service (HaaS), with a brand new providing set to roll out in two phases—an preliminary model by Q4FY25, adopted by a full-scale launch in FY26. Administration expects the initiative to show cash-positive inside its first yr, underscoring its disciplined funding method.
Whereas natural progress stays a precedence, strategic acquisitions have accelerated Happiest Minds’ enlargement and strengthened its international footprint.
The PureSoftware acquisition not solely bolstered the corporate’s fintech capabilities but in addition diversified its income streams, extending its attain into Mexico, Singapore, Malaysia, and Africa—serving to scale back its reliance on the US market.
In the meantime, the $8.5 million (round ₹71 crore) acquisition of US-based Aureus Tech Programs enhanced Happiest Minds’ digital product engineering experience, strengthening onshore supply and bettering shopper proximity.
Each acquisitions, seamlessly built-in in Q1FY25, have helped push Happiest Minds’ income progress forward of {industry} benchmarks, setting the next baseline for FY26 and FY27.
Management revamp
As Happiest Minds enters its subsequent section of progress, a management overhaul is setting the stage for accelerated enlargement.
In March, Joseph Anantharaju was elevated from govt vice chairman to co-chairman & CEO, whereas Ashok Soota transitioned to govt chairman & chief mentor—making certain continuity in tradition whereas empowering new management to steer the corporate’s long-term technique.
The appointment of Maninder Singh as chief progress officer provides additional momentum to shopper acquisition and cross-selling, reinforcing Happiest Minds’ repute for agility and customer-centric innovation.
Monetary outlook
Happiest Minds expects to maintain double-digit natural progress in FY26 and FY27, with analysts projecting FY26 income to succeed in ₹2,475 crore, a 21% YoY enhance.
Regardless of continued investments in HaaS, GenAI, and expertise acquisition, the corporate stays assured in sustaining Ebitda margins within the 20–22% vary, reflecting its disciplined value administration and give attention to operational effectivity.
And whereas potential US slowdown stays a danger, Happiest Minds has constructed a diversified income base to cushion towards macroeconomic headwinds.
Its give attention to personal equity-backed companies and GCCs ensures demand from companies that proceed investing in tech upgrades, no matter financial cycles.
On the identical time, enlargement into Latin America, the Center East & Africa, and Southeast Asia is decreasing its dependence on the US. The corporate’s pivot to SaaS and HaaS can be creating predictable, subscription-based income streams, additional insulating it from cyclical downturns.
Standing out in a crowded market
In an more and more aggressive IT companies panorama, Happiest Minds is outpacing each {industry} giants and mid-tier rivals.
Whereas TCS, Infosys, and Wipro wrestle with low-single-digit progress, Happiest Minds is charting a distinct trajectory, with projected progress charges within the mid-teens to low-20s—effectively above the {industry} common.
Amongst mid-tier gamers like Coforge, Persistent Programs, and LTIMindtree, Happiest Minds units itself aside with increased progress charges, stronger margins, and deep experience in digital transformation.
With Ebitda margins of round 21%—among the many highest in its class—and a 95% offshore supply mannequin, the corporate maintains a lean, cost-efficient operation whereas delivering premium digital companies.
On observe to hit $1 billion income by 2031
With strategic agility and an aggressive push into rising applied sciences, Happiest Minds is effectively on its method to reaching its $1 billion income goal by 2031.
For extra such analyses, learn Revenue Pulse.
By staying forward of {industry} shifts—whether or not in AI, cloud-based options, or vertical-specific digital transformation—the corporate is carving out a spot amongst international digital engineering leaders like EPAM Programs and Globant.
Concerning the writer: Suchitra Mandal is a proficient monetary author with experience in delivering well-researched insights and detailed analyses of corporations’ efficiency and market tendencies.
Disclosure: The writer doesn’t maintain shares in any of the businesses mentioned. The views expressed are for informational functions solely and shouldn’t be thought-about funding recommendation. Readers are inspired to conduct their very own analysis and seek the advice of a monetary skilled earlier than making any funding selections.
